‘Hard-earned Social Security checks should not be siphoned off to pay interest and fees on student loan debt,’ says Elizabeth Warren

By Deirdre Fulton, staff writer for Common Dreams. Published 12-21-2016

“We could have hundreds of thousands of American seniors living in poverty due to garnished Social Security benefits if this trend continues,” said Sen. Claire McCaskill of Missouri. (Photo: Kate Gardiner/flickr/cc)

The federal government is garnishing Social Security checks to recoup unpaid student debt, leaving thousands of retired or disabled Americans below the poverty line and setting the stage for an even bigger problem, according to a new report.

The data from the Government Accountability Office (GAO), compiled at the behest of Sens. Claire McCaskill (D-Mo.) and Elizabeth Warren (D-Mass.), showed that people over the age of 50 are the fastest-growing group with student debt, outpacing younger generations—and compared to younger borrowers, older Americans have “considerably higher rates of default on federal student loans.” This leaves them open to having up to 15 percent of their benefit payment withheld, in what’s called an “offset.” Continue reading →